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Facts
The assessee's appeal was dismissed by the Ld.CIT(A) ex parte for not responding to notices, which the assessee claims were not served properly and landed in spam. The assessee also contended that evidence filed was not considered, and arbitrary additions were made.
Held
The Tribunal found the assessment order to be cryptic and vitiated due to non-application of mind and lack of discussion of evidence. Therefore, the assessment was restored to the AO for a de novo assessment after considering all evidence.
Key Issues
Whether the ex parte assessment order passed without considering evidence and without proper service of notices is valid? Whether the matter should be remanded for fresh assessment?
Sections Cited
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 28.02.2025 for the Assessment Year (hereinafter referred to as "AY”) 2017-18.
At the outset, the Ld.AR of the assessee brought to our notice that the impugned order of the Ld.CIT(A) is an ex parte order qua assessee.
1. According to the Ld.AR, the Ld.CIT(A) has dismissed the appeal of the (AY 2017-18) Ponraj Santhi assessee only on the ground that the assessee didn’t respond to his notices issued on six (6) occasions. In this regard, the Ld.AR brought to our notice that the notices couldn’t be served upon the assessee but it got dropped in the ‘spam’ account of the assessee. Therefore, according to the Ld.AR, the assessee was in the dark about the appellate proceedings going on against him. Be that as it may, it is noted that the impugned order has been passed by the Ld.CIT(A) without hearing the assessee.
The assessee also brought to our notice that the evidences filed before the AO has not been considered by him and has made arbitrary additions.
In the light of the aforesaid submissions, and after having gone through the assessment order, prima facie note that the assessment order is a cryptic order without discussing anything about the documents/evidence filed by the assessee. The AO is noted to have acknowledged that the Chartered Accountant appeared on behalf of the assessee and also furnished VAT returns, etc., and also admitted that assessee had filed all the details called for by him. Having said so, still the AO without discussing any details of the assessee’s contention, have taken adverse view and passed cryptic order which shows non-application of mind and therefore, we find that the assessment order itself is vitiated and therefore, we are of the view that the assessment should be restored back to the file of the AO for de novo assessment. The assessee is directed to be diligent and file all relevant documents to substantiate its (AY 2017-18) Ponraj Santhi claim regarding additions made by the AO by submitting written submissions also; and thereafter, the AO to pass speaking/reasoned order after considering the evidences filed by the assessee.
In the result, appeal filed by the assessee is allowed for statistical purposes.